Exxon, U.S. Bank: Stocks To Watch As Inflation Surges To 30-Year Highs

Exxon, U.S. Bank: Stocks To Watch As Inflation Surges To 30-Year Highs

The inflation rate in the U. S. continues to surge, with the consumer price index published by the Bureau of Labor Statistics last week rising by 6. 2% in October compared to a year ago. This marks the fastest annual increase in over 30 years and a surge from levels of 5. 4% in September. There are a couple of factors driving rising inflation, including higher energy and food prices, strong demand and supply chain issues following the Covid-19 opening, and a severe shortage of workers, which is driving wages higher. The core CPI, which excludes energy and food, also jumped 4. 6% on a year-on-year basis, marking the highest levels since August 1991. With inflation rates actually trending higher in recent months, there are concerns that inflation may not be transitory as previously expected. While stocks, in general, fare better than bonds during periods of high inflation, our theme of Inflation Stocks includes companies from the banking, insurance, consumer staples, and energy sector that could be more likely to benefit from high inflation. The theme has returned about 25% year-to-date, roughly in line with the S&P 500. Within our theme, Exxon Mobil has been the strongest performer, rising by